The banks, the sources Mef: ’20 billion, sufficient for every need’ – LOOP.it

The perimeter of the bottom to the banking crises established by the decree save-savings has been drawn widely enough to meet all the needs of intervention that may emerge from the situations currently under observation by the institutions. Lo indicate the sources of the Mef in regard to the fund’s 20 billion that will be leveraged for the recapitalization measures, such as that required by the Mps, or to the State guarantee on new issues to cope with shortages of liquidity.

free in the meantime by the Ecb to the intervention of the State in the Mps but the count goes from 5 to 8.8 billion euros. The bank informs you that it has received from the Ministry of Economy and Finance, and two letters drafted by the ECB, addressed to the same Ministry which confirm the fulfilment of the necessary requirements to access the measure of the “recapitalisation measure”, in accordance with the current legislation. The results of the stress test of 2016, according to the Ecb, they have in fact registered a shortfall, only in the adverse scenario, in the parameter of the CET 1 fully loaded at the end of 2018, equal to -2,44%, and put it in relation with a threshold of 8%; this shortfall translates, according to the Ecb, in a capital of € 8.8 billion, including all of the components of own funds as provided for by the legislation in force.

LIQUIDITY RAPIDLY DETERIORATING , The liquidity position of the Bank has undergone a rapid deterioration between 30 November 2016 21 December 2016, as evidenced by the significant decrease in the counterbalancing capacity (from 14.6 billion to 8.1 billion euro) and the net liquidity up to 1 month (from 12.1 billion euros, equivalent to 7.6% of total assets, at eur 7.7 billion, equal to 4.78% of the total assets).

WEIDMANN, WEIGH WELL the RESCUE The saving of the Mps must be carefully weighed. “For the measures decided by the Italian government, the banks must be financially healthy to the core. The funds may not be used to cover losses that are already required.” This was stated by the president of the Bundesbank, Jens Weidmann. And other doubts are expressed by Isabel Schnabel, a member of the Sachverstaendigenrat, the Council of Economic Experts of Germany, the so-called “Five wise men”, who says: “an extensive clean-up of the Italian banking system is necessary and must be made promptly. The insolvent banks must be closed, the banks vital must be ricapitalizzate. Suffering should be removed from the financial statements of banks”. According to Weidmann, the risk is that there is a strong turbulence. “All of this needs to be carefully examined”. Weidmann explains that the european rules will “serve to protect the taxp ayers and give responsibility to the investors. The state funds are as a last resource.”

SOURCES MEF: 20 MLD SUFFICIENT FOR EVERY NEED - The perimeter of the bottom to the banking crises established by the decree save-savings has been drawn widely enough to meet all the needs of intervention that may emerge from the situations currently under observation by the institutions. Lo indicate the sources of the Mef in regard to the fund’s 20 billion that will be leveraged for the recapitalization measures, such as that required by the Mps, or to the State guarantee on new issues to cope with shortages of liquidity.